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Interactive data and retail investor decision‐making: an experimental study
Author(s) -
Locke Joanne,
Lowe Alan,
Lymer Andy
Publication year - 2015
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12048
Subject(s) - comparability , computer science , identification (biology) , software , investment (military) , investment decisions , statement (logic) , work (physics) , financial statement , data science , accounting , finance , business , behavioral economics , mechanical engineering , botany , mathematics , audit , combinatorics , politics , political science , law , biology , programming language , engineering
The results of an experimental study of retail investors' use of eXtensible Business Reporting Language tagged (interactive) data and PDF format for making investment decisions are reported. The main finding is that data format made no difference to participants' ability to locate and integrate information from statement footnotes to improve investment decisions. Interactive data were perceived by participants as quick and ‘accurate’, but it failed to facilitate the identification of the adjustment needed to make the ratios accurate for comparison. An important implication is that regulators and software designers should work to reduce user reliance on the comparability of ratios generated automatically using interactive data.